im reading this wrong...is the health levy > income levy

jon1981

Hi,

just looked at the tax calculator and it looks like the health levy is actually having a far bigger impact than the income levy?! I don't think many people realise this.

ixoy

Correct (assuming you're earning over 20k and under 75k). It is being down-played all right - I know when I heard "health levy" I didn't realise what it actually meant.

toodelies

excuse my ignorance but what exactly is the health levy, i had no idea what it was when listening to the budget the last night?

seamus

It's part of your PRSI contribution. Most people paid 6% PRSI. Now you pay 8% thanks to the health levy.

gaz wac

yea, prsi is broke down into two, prsi ( 4%) and health levy (2%) = 6%. So now it will be (4% & 4%)= 8% so together with the increase in Income levy, you will be 3% less of on your gross amount :mad:

toodelies

thanksfor that. I did a calculation on that on line thingy and its now officially better for me to be on the dole than it is for me to be working... :rolleyes:.. can't wait to see what december will bring.

hammer1

gaz wac wrote: »

yea, prsi is broke down into two, prsi ( 4%) and health levy (2%) = 6%. So now it will be (4% & 4%)= 8% so together with the increase in Income levy, you will be 3% less of on your gross amount :mad:

Cheers for that, didn't have a clue what the health levy was. this might be stupid but what is Prsi for? and then what does the health levy do?

is it the same thing?

hammer1

sorry for my ignorance

damoz

Levy = another name for tax.

They can call it any name, but its basically just a tax, as it does not go direct to health expenditure, just into the coffers for allocation like all tax.

In the next budget all the levies will be brought into the normal tax brackets - so expect to see 24% low bracket and 44% high (at least !)

bonnamh

Do Civil Servants pay this health levy ?
I understood they don't pay full PRSI like ordinary workers

ceret

I was a bit confused at first, thinking that it was only a 1% increase in taxes, but it's 3% in total. Bah.

Helix

bonnamh wrote: »

Do Civil Servants pay this health levy ?
I understood they don't pay full PRSI like ordinary workers

its true

they also sacrifice small children in the name of bank owners, steal pensions from grannies, and are the reason the irish national team is rubbish